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What Price Travel?

What Price Travel?

When travelling there is always something we may forget or need for the journey, but as consumers how much more do we pay for the convenience of having essentials available to us whilst en route?

ESA Retail looked into how much extra retailers charge at travel locations such as Airports, Service Stations, and Train Stations in comparison to the High Street. A basket of travel essential products were selected and in-store price collections carried out using our ESA Mobile smartphone data collection app (https://www.esa-retail.co.uk/news/16/esa-retail-launches-smartphone-questionnaire-app/) in order to determine whether consumers are charged a premium when purchasing from retailers available across different channels.

We selected our basket of products from the following categories to be collected in WHSmith, M&S, Costa, Boots, Burger King:

What We Found

Every retailer (except Costa, Train Station) charged a premium in all three channels (Airport, Service Station and Train Station) compared to the High Street.

The total average premium across the three channels was 14.7%.

Retailers in Service Stations added the highest premium to items at an average of 17.9% followed by Airports at a premium average of 17.4% and Train Stations at 8.8%.

 

  

Customers shopping at WHSmith would have been charged an average premium of 18.8% when travelling.

When looking at the average premium across each channel, customers would have been charged the following:

 WHSmith added the highest premium on items in their Airport stores than those at Service Stations and Train Station stores.

 

Customers shopping at M&S would have been charged an average premium of 16.8%

When looking at the average premium across each channel, customers would have been charged the following:

M&S added the highest premium to their items at Service Stations with the premium percentage at 18.3%. Airport stores were nearly as expensive with a premium average of 17.0%.

  

Customers shopping at Costa Coffee would have surprisingly saved money on some items.

When looking at the average premium across all three channels for Costa, the average premium came up to 8.4%.

Some items which were cheaper at the Train Station were:

Costa Free Range Egg Mayonnaise Sandwich was the cheapest at the Train Station in comparison to the other channels:

Costa Scottish Smoked Salmon and Soft Cheese Sandwich was also the cheapest at the Train Station in comparison to the other channels:

However when comparing the average premium for each channel, Costa charged the highest premium at Service Station stores at 14.9% followed by Airport stores charging a premium average of 14.1%.

    

Boots added the highest premium of 6.5% to their items at Airport stores. However many of Boots items were the same price as their High Street stores.

The average premium across each channel that customers would have been charged was:

           

Burger King kept most of its Service Station items at the same price as its High Street store.

The highest premium was added to Burger King items at Airports where the premium was 27.0%. Although, there were certain items which were charged at a premium at Train Stations and Service Stations for example:

King of the day deal was cheaper on the High Street and Service Station with a combined average premium of 12.3% across the Airport and Train Station.

However, Burger King do have franchises with independent pricing so it is likely that not all channels would use the same price structure.

Retailer premium charges in each channel

Burger King charged the highest average premium on its items across all three channels whereas Boots and Costa kept the majority of their items at the same price, in some instances lower than the High Street price.

For more information about ESA Retail’s price collection and other in store services, please contact Umaira.Nawaz@esa-retail.co.uk – 01727 730 300

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